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SolarEdge Technologies (SEDG) saw a significant jump in its share price today after receiving an upgrade from Bank of America. The bank upgraded SolarEdge from “underperform” to “neutral,” citing the company’s potential for profitability next year and its current undervaluation in the market.

According to Bank of America, the recent drop in SolarEdge’s share price was based on unlikely worst-case scenarios, such as inventory writedowns and inventory channel congestion. However, the bank believes that these concerns are overblown and that SolarEdge will return to profitability in the first half of 2025.

As a result of the upgrade, SolarEdge shares were up more than 8% in mid-afternoon trading, showing a strong response from investors to the positive news. The bank did lower its price target for SolarEdge from $44.1 to $29, but overall, the outlook for the company seems to be improving.

This upgrade from Bank of America has brought renewed optimism for SolarEdge and its future prospects in the solar power equipment market. Investors will be keeping a close eye on how the company performs in the coming months as it works towards returning to profitability.